A3

By KYLE MULLIN
mullin.kyle@dailygleaner.com

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Even the slimmest chance to reduce debt, interest rates or save a dime may be tempting in these tight times, but Audrey Jordan says it's not always worth the risk, especially if the offer comes from a stranger over the phone.

"They call me once or twice a day about updating my credit card, and I don't even have one," said the Killarney resident.

She's referring to calls from an automated voice claiming to be Mike from Credit Card Services, offering to negotiate lower interest rates for her and millions of other North Americans for a fee up front. But those who pay for this service don't realize they can negotiate with their credit card companies on their own just as easily for free.

Don MacKinnon, president and CEO of the Better Business Bureau of the Maritimes, said the calls are a scam, but they may not necessarily be illegal.

"Whoever makes these telemarketing calls, they're offering a service, that is to negotiate a lower interest rate on your behalf," he said.

"But the chances of them negotiating a lower interest rate for you is highly unlikely. You'd have just as much luck yourself. The thing is it implies it's calling on behalf of credit card providers."

And that's how people get duped. These "robocalls" often start with "There are no problems currently with your account. However, it is urgent that you contact us concerning your eligibility for lowering your interest rates to as little as 6.9 per cent," or "This is our final attempt to reach you since you've not responded to our other calls to discuss your credit card debt."

What these automated messages often leave out is the company name - firms such as Orlando, Fla., based CSTR Solutions and Genesis Capital Management, or Tacoma, Wash., based Mutual Consolidated Savings. The BBB said they are behind some of the robocalls promising to save people anywhere from $2,000 to $25,000 by negotiating lower interest rates with credit card companies for a fee of between $700 and $1,000.

"To give your money to them like that is pretty dumb," Jordan said, adding that she always hangs up the phone upon hearing them.

"I mean, why take out money and give it to someone else? I can't imagine anyone falling for it. I can't understand it."

But MacKinnon said people do fall for it. The BBB has been flooded with complaints as of late from people saying they were ripped off after signing up after a robocall.

With average credit card debt jumping 25 per cent in the last 10 years and per household debt at nearly $9,000, MacKinnon said the average consumer is growing desperate, especially in this recession.

Elaine Bell, communications officer for the Justice and Consumer Affairs and Office of the Attorney General, said little can be done on for Frederictonians whose phones are ringing off the hook with robocalls.

She said telecommunications violations are federal level offences, but added that anyone can fight the calls themselves by being proactive and educating themselves.

"The old adage goes if it sounds too good to be true, it usually is," she said, adding that no deal is good enough to justify giving out bank, credit card or SIN numbers over the phone.

"Don't volunteer that kind of stuff, especially when you're being solicited out of the blue. Don't let yourself get sucked into that."

She said people struggling to make monthly payments should contact their bank or credit card company directly. She said phonebusters.com is a good resource to find the latest information on telemarketing scams.

Anyone who has fallen victim to a scam should contact the local police or RCMP immediately.

MacKinnon said anyone looking to block robocalls can ask to be put on the federal no-call list by calling 1-866-580-3625.